Pense Co purchased 40% of the stock of Stretch Co in Year 1 for $100,000 . Stretch had net income in Year 1 of $50,000 and net income in Year 2 of $30,000 . Stretch also paid total dividends of $20,000 in Year 2 . On January 1, Year 3, Pense Co sold its investment in Stretch Co to GE Capital Corporation (GE) for $130,000 . What entry would Pense Co make to record the sale of Stretch Co?
a. Cash 130,000
Gain on Sale 6,000
Investment in Stretch 124,000
b. Cash 130,000
Loss on Sale 2,000
Investment in Stretch 132,000
c. Cash 130,000
Loss on Sale 10,000
Investment in Stretch 140,000
d. Cash 130,000
Loss on Sale 30,000
Investment in Stretch 160,000
e. Cash 130,000
Loss on Sale 20,000
Investment in Stretch 150,000
A
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